1. Free Trade, Food & the WTO
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Free Trade, Food & the WTO
International economic institutions
WTO Agreement on Agriculture
Subsidies & developing countries
WTO food rulings
International food standards
Fair trade
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2. Bretton Woods Institutions “Peace through Prosperity”
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Bretton Woods Institutions “Peace through Prosperity”
World Bank: long-term infrastructure development
IMF: primarily short-term currency loans
GATT: “free trade”
Applied to manufactured goods
WTO (1995): replaced GATT
Includes agriculture, finance, service
Goal of sustainable development
Binding dispute settlement panels
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3. Three Types of Agricultural Protection
Domestic support
Price supports and direct subsidies paid by the government to farmers
Can encourage overproduction and drive down world prices
Market access
Restricting foreign imports, usually through high tariffs or quotas
Export subsidies
Government funding to exporting firms
- Suppresses global prices, increases domestic consumers
- The most trade distorting type of protection
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4. Agreement on Agriculture (1995)
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Agreement on Agriculture (1995)
1) Domestic support (subsidies)
Subsidies to be reduced but not eliminated
Unlimited subsidies linked to production-limiting programs
EU & US subsidies total $380 billion/year
2) Market access
Reduction in tariffs: more and faster for IC’s
3) Export competition
Reduce subsidies on exports
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5. Why agriculture matters to DCs
Portion of GDP as Agriculture
Source: World Resources Institute 2007
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7. Doha Round (2001-present) “Development Round”
Agriculture - top issue
G-20, led by Brazil & India, counters U.S. & E.U.
Split between G-20 and G-90
US wants EU to cut tariffs
EU & DCs want US to cut subsidies
WTO on Brazil-U.S. cotton dispute: US must cut subsidies (2004)
Africa “Cotton Group” wants cotton outside AoA
Oxfam
Under AoA, 97% of benefits go to rich & middle-income countries
Intellectual property rights: #2 issue
Medicines, biotech
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9. Key WTO Agriculture Rulings
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Key WTO Agriculture Rulings
1998 Shrimp-Turtle case (U.S. vs. Asia)
U.S. cannot require turtle excluder devices
U.S. vs. E.U.
EU cannot favor indigenous (often organic) farmers in former colonies over Chiquita & Dole bananas (1998)
EU must allow GM food (2006)
EU labels it, US challenges this
EU must allow U.S. beef injected with growth hormones
EU paying fine compensation (2008)
No country-of-origin labels for meat (2012)
Canada & Mexico vs. U.S.
Meat packers say COOL labels violate free trade
Obama administration will appeal
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10. Bali Ministerial Declaration (2013): “Trade Facilitation”
Streamlines customs process, especially in DCs
Intended to reduce bureaucracy & corruption
Protects public food security programs in DCs
Allows more DC support through stock buy-in
Import quota reform: U.S. excluded itself
ALL COMMITMENTS ARE NONBINDING
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11. Codex Alimentarius Commission
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Codex Alimentarius Commission
Sets international food standards
Joint body of FAO & WHO
“ to protect consumer health & ensure fair practices in food trade”
Voluntary guidelines
Membership growing
After 1995, Codex guidelines “semi-binding”
WTO mandate on agriculture
Regulations must be least trade restrictive, based on science and, where available, on intl. standards
GM labeling under study since 1997
2011: OK’d but not mandated
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12. Fair Trade .Certification requires transnational connections
Small producers must band together in cooperatives
FairTrade Intl (FLO), Equal Exchange, Rainforest Alliance….
Connections to HR NGOs & govt agencies
World Free Trade Organization
Global Exchange
Tensions: rebranded FairTrade-USA
Organic Consumers Assoc: “fair trade a movement, not a brand”
FairTrade-USA leaves FLO to work with big producers
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13. POL S 422 Lec 17 "Ecology and the Global Economy"
Rapid growth but only 3.5% of US coffee imports are fair trade.
Source: Center for Popular Economics
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15. Questions to Consider Is the WTO incompatible with food sovereignty?
How might the WTO be reformed to encompass food justice and sustainability?
What are the benefits and shortcomings of fair trade?
Can ethical consumption guarantee justice?
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